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Tether (USDT) Loses Dollar Peg After Widespread Crypto Market Panic

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Tether (USDT) plunged to 97 cents in Asian hours, losing its parity with US dollars, but pared back some losses to stand at 98.5 cents.

Source: Twitter

USDT USD down -0.80%, BTC USD down -0.87%

Separately, Bitcoin lost the $27,000 support level and fell to $25,400, reaching levels initially seen in December 2020.

Traders sold USDT for US dollars despite poor sentiment for stablecoin in the crypto industry. Earlier this week, TerraUSD (UST) depegged to as low as 22 cents from its target $1.

The sell-off comes as Paolo Ardoino, CTO of Tether, confirmed that Tether was continuing to honor “USDt redemptions at $1 through its site.

Tether continues to process redemption amid some expected market panic. Tether has not and will not refuse redemptions to its customers.

On Bitfinex, the Tether peg is more than $1, while on Kraken, it is slightly less than $1. The market situation has led to arbitrageurs purchasing USDt cheap on Kraken and selling it on Bitfinex for profit.

 

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